Different attitudes towards company’s involvement in international marketing process are called international marketing orientations. The EPRG framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is established. There are four broad types of orientation of a firm towards foreign marketing:
ETHNOCENTRIC:
The ethnocentric orientation of a firm considers that the products, marketing strategies and techniques applicable in the home market are similar to that in the overseas market.
In such a firm, all foreign marketing operations are planned and carried out with little or no difference in product formulation and specifications, pricing strategy, distribution and promotion measures.
For example, Walmart’s offerings remain the same throughout.
REGIOCENTRIC:
In regiocentric approach, the firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics such as economic, cultural or political similarities and formulates operational strategies based on region instead of countries.
For example, countries like Pakistan, India and Bangladesh are very similar. They possess a strong regional identity.
GEOCENTRIC:
In geocentric orientation, the firms accept a worldwide approach to marketing and target “global consumers” with similar tastes.
There are similarities between geocentric and regiocentric approaches in the international market except that the geocentric approach calls for a much greater scale of operation.
For example, Nokia offers products to a similar kind of consumer worldwide.
POLYCENTRIC:
When a firm adopts polycentric approach to overseas markets, it attempts to organize its international marketing activities on a country to country basis.
Polycentric approach works better among countries which have significant economic, political and cultural differences.
For example, McDonald’s tailoring its offerings to the country of operation such as Maharaja Mac in India, McItaly in Italy, McLobster in Canada.
Before a firm enters an international market, evaluating the type of orientation it shall use will optimize its growth potential.
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